We haven't had this few homes hit the market since 2006
Despite the drop in sales, February's new listings were at a 17 year low.
The skinny on real estate in Calgary over the past 30 days....we need more homes to sell! I know. With all the news headlines about the sagging Canadian Real Estate market, that might be tough to believe, but Calgary (and all the prairie cities for that matter) continue to buck the national trend.
In February, the number of new listings to hit the market was the lowest level we've experienced since 2006. If you remember, that was a time when you had to have an offer in your hand when you viewed a home, and be ready to submit it immediately along with the 20 other people standing there. That’s not what’s happening now. That was a different time, but tight supply always means stable or increasing prices, which doesn't make a lot of sense with interest rates skyrocketing like they have...yet here we are.
The benchmark price has jumped $10,000.00 since January, which traditionally would not make sense when sales have dropped almost 50% in a year.
The drivers are still the same as we have been seeing for the last couple of years. The job market, quality of life, and relatively inexpensive real estate prices (for a major North American city) are driving massive amounts of people to move here from both other provinces, and other countries. Add to that people who are already living here are not leaving, and builders have no supply ready to go, and we are heading to a critical shortage of homes in the province.
RELATED: Alberta Needs An Extra 20,000 Homes To Remain Affordable.
What is Happening With Interest Rates Moving Forward?
The bank of Canada has hinted that interest rates will remain stable for now, giving the market some time to adjust. Residential real estate is not practical. It is all about emotions and feel. Stable rates will take some of the anxiety out of the market, even if it is short term. This could create even more pressure to inventory if it brings buyers off the sidelines.
So What Do You Do?
If you're a buyer, it's important to be prepared to make an offer quickly, given the low inventory levels. And if you're a seller, it's a great time to take advantage of the high demand and low inventory by putting your home on the market. You might be surprised what it is worth today. I know we are continually being shocked at what homes are selling for. Apparently we all need time to adjust to the new normal.
RELATED: It's Been a Wild Ride - Do You Know How Much Your House is Worth Today?
Thanks for reading our Streetview of Calgary Real Estate. We really appreciate it!
To see the detailed statistics for this month, click here.
Ken Rigel Group @ EXP Realty
O: 403 207 1748
C: 403 835 6338
email: [email protected]